probate – Anderson Real Estate Investments, LLChttp://www.michaelshawnanderson.com
Fri, 14 Dec 2018 06:00:00 +0000en-UShourly1Why Probate Properties Could Be The Best Deals in Nashvillehttp://www.michaelshawnanderson.com/probate-properties-could-be-the-best-deals-in-nashville/
Sat, 20 Jan 2018 06:00:00 +0000https://manderson316main.oncarrot.com/?p=899Probate is the legal process that happens when a person dies and the executor must collect all assets, itemize all remaining debts and then liquidate all property to pay debts and distribute assets. Unlike property in a trust, probate requires court approval and is a lengthy process with attorneys and judges. Despite that, here are […]

]]>Probate is the legal process that happens when a person dies and the executor must collect all assets, itemize all remaining debts and then liquidate all property to pay debts and distribute assets. Unlike property in a trust, probate requires court approval and is a lengthy process with attorneys and judges. Despite that, here are why probate properties could be the best deals in Nashville.

A Motivated Reason To Sell

The probate process can be lengthy. While everything must go through the judge for approval, if there are few debts and adequate assets, executors could be motivated to sell sooner than later to avoid continuing maintenance, property tax bills and the potential of market conditions declining as the property sits vacant.

This is an opportunity for an investor to present a reasonable offer, often still under fair market price, and engage the seller in negotiations. Understanding the process of probate allows a savvy real estate investor to help an executor quickly complete probate proceedings.

Your leverage as an investor is particularly strong in slow real estate markets where there aren’t a lot of retail buyers. Without a ton of offers coming in, the executor is eventually forced to take an offer to close escrow and distribute remaining assets.

The Lengthy Process Reduces Competition

Anyone who has ever bought a property through the probate process will tell you it requires patience. The process is long; it’s that simple. Because of this, not a lot of buyers want to engage in the process. This means you have reduced competition not just among standard consumer buyers hoping to get a deal, but many other investors who don’t want to be tied up in a lengthy deal. Most investors want to get in and out as quickly as possible.

Even if the property gets listed on the market, the idea of probate discourages many from even trying. For an investor who has time and patience, this means you might be one of few, if any, offers to come to the table. Reduced competition certainly helps to negotiate the best possible price and terms for you.

Being able to structure your deals as cash also gives you a leverage point against a lot of competition. Executors don’t want to go in and out of escrow. Once they accept an offer, they want it to close as quickly as possible without financing hold-ups.

Primed for a Quick Fix and Flip

Most probate sales are completed “as is”, meaning the buyer isn’t requesting any repair or credits during the escrow process. Executors like this because they don’t want to deal with the hassle of making any repairs as they work on all other aspects of closing probate.

Many probate sale homes are distressed to a certain degree but rarely to the level of distress of a foreclosure. The type of distress that a probate property is in often is the result of an aging homeowner unable to ideally maintain the home due to a limited budget or physical conditions. A foreclosure is often distressed because owners losing their home often do intentional damage out of frustration.

Because the probate home usually only needs limited repairs and updating, a fix and flip investor is able to get in and out of the property much faster. Of course, this is once probate approves the transaction. But once it has, investors are poised for a faster return on investment.

Keep an eye out on probate court lists. Use them as a means to find opportunities that other investors aren’t looking at. As you work through several probate properties, you will get a better understanding of how to work with executors and courts and efficiently close escrow to rehab properties and sell them for a profit.

These are not the only reasons why probate properties could be the best deals in Nashville but certainly are some of the most important.

ARE YOU LOOKING TO SELL A HOME IN Nashville THAT YOU HAVE INHERITED THROUGH THE PROBATE PROCESS?

GIVE IS A CALL AT 615-610-1284 OR FILL OUT OUR ONLINE FORM. WE CAN HELP!

]]>3 Keys to a Successful Probate Investing Mindset in http://www.michaelshawnanderson.com/keys-successful-probate-investing-mindset-tn/
Fri, 19 Jan 2018 06:00:00 +0000https://manderson316main.oncarrot.com/?p=898Successful real estate investors have a mindset that gives them the ability to negotiate a deal that makes business sense. Most real estate transactions between consumers are a very emotional deal. However, the probate process is very different, mixing a very emotional time in a family’s life with a very business-like probate court system. Here […]

]]>Successful real estate investors have a mindset that gives them the ability to negotiate a deal that makes business sense. Most real estate transactions between consumers are a very emotional deal. However, the probate process is very different, mixing a very emotional time in a family’s life with a very business-like probate court system. Here are three keys to a successful probate investing mindset in .

Set Realistic Expectations

One of the key mindsets for probate investing is setting realistic expectations. In fact, realistic expectations are true for any type of successful real estate venture. There are so many moving parts in the probate process and people involved that if you don’t understand what to expect, you will become frustrated.

The process, though simple, requires approvals along the way. In probate, an executor oversees all aspects of liquidating and distributing the estate. This includes gathering assets, selling real property and determining all outstanding debts to be paid by the proceeds before money is distributed to beneficiaries.

The executor is not just answering to beneficiaries who can hold the executor liable for not properly liquidating real property for the best price. They are also subject to the approvals of the probate court judge whose job is to make sure the proceeds cover liabilities adequately. Understanding this process means you can adjust your expectation of a quick transaction.

Don’t Be In a Rush

With all of the parties involved in the probate process, you need to understand this isn’t an overnight, fast deal. Even coming in with cash will not always expedite the process. Understand this.

Since the process can take more than a year in some cases, work in expiration dates that give you an out if the market conditions become unfavorable over the course of the purchase. The market might be ripe for a fix and flip right now but can be entirely different in 12 months. Be patient but also plan accordingly so you aren’t stuck with a property because the market turned on you in the waiting process.

Not being in a rush is also a power play as a business investor. If you come across as indifferent about the entire deal, the selling party has no idea if and when you are ready to walk away. Remember that the probate system needs to liquidate the assets in most cases. If there isn’t a lot of market activity, sellers will want to keep you engaged.

Be prepared to walk away to keep them engaged with you. You’ll have the upper hand.

This is one of the most important keys to a successful probate investing mindset in .

Welcome Objections

You may need to field a lot of objections in the probate sale process. Beneficiaries might have a skewed view of the fair market value of the home. They may not understand that the property is distressed compared to other properties in the area and object to your seemingly low offer.

Executors and probate attorneys might also object to the terms of the offer contract. While it is always best to make the offer in cash and without repairs, you may try to negotiate this in the first offer. Remember that you are the real estate expert; they are the probate expert.

Do your homework and be prepared to explain why your offer is backed by market conditions. Going back to being patient, smart probate investors find that executors often come back as time marches on wanting to reconsider your original offer or something close to it.

When sellers have objections, they haven’t rejected you yet. They are trying to open a negotiation. This works in your favor. Welcome the objections and start the conversation. One thing to always remember is to be empathetic and always remember the family is likely going through a very emotionally hard time.

IF YOU KNOW ANYONE WHO IS CURRENTLY LOOKING TO SELL A HOUSE THEY INHERITED IN Nashville, PLEASE HAVE THEM CONTACT US AT 615-610-1284 OR BY FILLING OUT OUR ONLINE CONTACT FORM.

]]>5 Pitfalls to Avoid When Starting Out in Probate Investing in Nashvillehttp://www.michaelshawnanderson.com/starting-out-in-probate-investing-nashville/
Thu, 18 Jan 2018 06:00:00 +0000https://manderson316main.oncarrot.com/?p=897Buying probate sale properties is a great way to find eager sellers with properties in good locations. As with any type of real estate investing, setting the right expectations helps set the tone for success. Here are five pitfalls to avoid when starting out in probate investing in . Expecting a Fast Process The probate […]

]]>Buying probate sale properties is a great way to find eager sellers with properties in good locations. As with any type of real estate investing, setting the right expectations helps set the tone for success. Here are five pitfalls to avoid when starting out in probate investing in .

Expecting a Fast Process

The probate process itself is bogged down with attorneys, executors, and courts. It isn’t a fast process. For anything to be accomplished and completed, the courts must approve it, including the sale of any real estate. Not only will the executor need to present the offer to the courts for approval, they must wait for court dates to open. The courts will review the offer, making sure it meets the cash requirement needs of the entire estate.

What that means for you is sitting and waiting. The courts might need to confirm all taxes, final expenses and other debts are calculated. It will want to see that the estate has enough cash proceeds to meet those needs. It can take months, sometimes more than a year for the probate process to finalize. Factor this into the offer and potential swings in the market.

Thinking Every Property is a Bargain

Once upon a time, investors heard “probate sale” and assumed that they could get a below market price deal for the property. When estate tax laws had low threshold limits, executors and beneficiaries often found themselves needing to liquidate quickly to meet the tax liabilities in a timely fashion or face fines and penalties.

This isn’t the case in most probate sales today. The estate tax threshold is in the millions and most probate property sales don’t need to worry about a quick sale to pay estate taxes. What this means for you as the investor is that you should expect to pay a retail price, or at least something close to it. In fact, know that many executors won’t consider offers without first listing the property for public sale. Multiple offer situations mean executors have done their job to see what the market will yield for the property, meeting their fiduciary responsibilities.

Read on to discover more pitfalls to avoid when starting out in probate investing in [maret_city].

Demanding Repairs or Credits

Executors are not homeowners. Beneficiaries are working quickly to sort through the items within the property. They then need to either hold an estate sale, donate, or dispose of these items. They are not in the business of fixing a home up for sale. Don’t expect them to.

When making an offer on a probate property, be sure to list “as is” as part of the terms and conditions. This makes the escrow process easier for executors who no longer need to worry about any requests for repairs or monetary credits in the process.

When making an “as is” offer, make sure you have done extensive due diligence prior to making the offer since your only options are to withdraw or keep an offer you weren’t comfortable with.

Failing to Understand the Probate Process

The probate process is very specific. Executors must follow the court rules and regulations. Failure to do so can result in personal liability. Understand that beneficiaries are not always the probate estate executor; they do not make the final decisions on these things. In fact, the executor might make decisions but these decisions need to be approved by the probate court.

It may take time for the courts to review and approve the purchase offer because the courts must look at the entire estate financial picture. All debts and bills need to be taken care of, as well as probate court costs. Learn the probate court system in Nashville so you don’t frustrate executors.

Not Going Back to Previous Property Offers

Keep good records of when you make offers and what the circumstances are around the offer and why it might be rejected. Because the probate process takes so long, many investors make the mistake of removing themselves from the opportunity and moving on to the next quick investment.

Consider that the executor may have had deals get declined from the court or buyers back out upon inspections or appraisals. If you have good notes and remain professional, you can go back to the executor and renegotiate the deal. You might find them to be more receptive to your offer after the property has been sitting. When all other matters in probate are completed, the executor might be more willing to quickly liquidate the property and work with you on pricing.

Becoming an expert in probate home buying will be beneficial to your real estate investment career.

CONTACT US TODAY AT 615-610-1284 OR BY OUR ONLINE FORM IF YOU ARE LOOKING TO SELL AN INHERITED PROPERTY FAST. WE CAN MAKE A CASH OFFER TODAY.

]]>3 Tips for a Winning Probate Investing Strategy in Nashvillehttp://www.michaelshawnanderson.com/winning-probate-investing-strategy-in-nashville/
Wed, 17 Jan 2018 06:00:00 +0000https://manderson316main.oncarrot.com/?p=896When someone inherits a property, they have one of two real options to consider: keep the property or sell it. Often beneficiaries have a desire to liquidate inherited property rather than try to manage it. If the sale is happening in the probate process, this called a probate sale. Here are three tips of a […]

]]>When someone inherits a property, they have one of two real options to consider: keep the property or sell it. Often beneficiaries have a desire to liquidate inherited property rather than try to manage it. If the sale is happening in the probate process, this called a probate sale. Here are three tips of a winning probate investing strategy in Nashville.

Market to Out-of-State Beneficiaries

When you get a list of probate sales in an area, properties are listed along with the address of the trustee, executor or beneficiary. This poses a great opportunity to make someone’s life easier by offering to buy the probate property when the new owner is out of state.

Beneficiaries and executors have to deal with a lot, especially if the deceased person is a close member of the family. There are a million things to do including dealing with bills, bank accounts, and funeral arrangements. Dealing with the home is one of the more daunting tasks, especially when there are years and years of personal and family items in the home.

Not only is this an overwhelming chore, but also it can be quite emotional to deal with the loss while going through a lifetime of memories. This task can be much more difficult logistically when the executor or beneficiary doesn’t live within a reasonable distance of the property.

As an investor, reaching out to these individuals makes a lot of sense. For those considering selling, the process becomes easier. The beneficiaries still need to sort through the personal items, but once that component is done, knowing there is a buyer ready on hand might just be the closure sought.

Offer the Right Price

Executors and trustees have a fiduciary responsibility to get as much for the property as possible. As a result, don’t expect to get the property for a steal just because someone is in a hurry to close an estate out. The reality is the probate process takes time regardless and an executor or trustee can be held liable by the beneficiaries and courts for selling the home for too little.

Make an offer at the market price or even slightly above if you feel there is an opportunity to fix and flip for higher numbers. You’ll be taken much more seriously for providing a real offer right off the bat rather than low-balling the price. In most cases, if the executor or trustee feels there is a better price they can get, they will decline the offer and list the property.

On the other hand, if you are able to probe and determine if there are other issues with the estate such as a large tax liability coming due quickly for the overall estate, the executor might need to liquidate quickly to meet the financial needs. In cases like this, you might be able to get the property for a discounted price so the beneficiaries don’t default on estate taxes.

Purchase “As Is”

An executor and trustee have enough on their plate and don’t want to deal with fixing a home up to prepare it for sale. This is an added cost plus the time and management of getting it done. It doesn’t make sense in most cases.

Make their life easier by making sure you place an “as is” offer. This means you understand there are issues with the property and most likely considerable repairs from what you can gather upon initial inspections but you aren’t going to seek repairs or credits in the escrow process.

For many investors seeking to fix and flip, this is the normal strategy regardless. You conduct your normal inspection before you make an offer, knowing from experience the approximate amount of work required.

TO LEARN MORE ABOUT HOW TO HAVE A WINNING PROBATE INVESTING STRATEGY IN Nashville, CONTACT US BY PHONE AT 615-610-1284 OR BY USING OUR CONTACT FORM.